What does B2B mean?

Business-to-business (B2B) is when a business sells goods or services to another business. It’s the opposite of business-to-consumer (B2C) transactions.

Example B2B transactions:

  • A store sells computers to another business
  • An agency hires a freelance writer
  • A mechanic repairs a company car

When we talk about VAT, a B2C transaction is a sale to another business that charges VAT. The VAT rules for B2B transactions are different from B2C transactions.

How VAT works in Germany